gujarat nre mineral resources ltd Management discussions

GUJARAT NRE MINERAL RESOURCES LIMITED ANNUAL REPORT 2011-2012 MANAGEMENT DISCUSSION AND ANALYSIS FINANCIAL RESULTS: (Rs. in Lacs) Particulars 2011-12 2010-11 Total Income 2085.35 2040.40 Total Expenditure 163.82 275.92 Profit before Tax (PBT) 1921.53 1764.48 Less: Provision for Taxation (23.64) 0.61 Profit after Tax (PAT) 1945.17 1763.87 Add: Balance brought forward 4795.79 3031.92 Balance carried to Balance Sheet 6740.96 4795.79 REVIEW OF OPERATIONS: Your Company being a core investment company is primarily engaged in making investments in its subsidiaries and group companies which are engaged in Oil & Gas Sector and Coking Coal & Met Coke Sector. During the year under review, your Company has earned total income of Rs.2085.35 lacs as against Rs. 2040.40 lacs registered in the previous year. Net Profit after Tax was Rs. 1945.17 lacs as against Rs. 1763.87 lacs recorded in the previous year. OIL EXPORATION ACTIVITIES: Your Company has been carrying forward its petroleum endeavor through its Australian Subsidiary viz. Gujarat NRE Oil Ltd. (GNOL) which has licenses to two large onshore blocks viz. EP 457 and EP 458 spread over 10640 sq. km. in the highly prospective Canning Basin of Western Australia. This year, we have been able to complete following important regulatory surveys in scheduled time. 1. Declared Rare Flora (DRF) Survey in co-ordination with Kimberley Land Council. 2. Heritage Site Clearance Survey in co-ordination with Kimberley Land Council and Nyikina Mangala Community. 3. No objection permits from all the Pastoral Lease Owners located within the two petroleum exploration permits for the two regulatory surveys. However, due to bad weather conditions in the second half of the year, we were unable to conduct any seismic survey as per the schedule. We are hopeful to complete the proposed 2D seismic survey in 2012-13 including the detailed data processing, interpretation and identification of the location of wells for exploratory drilling.